Attached files
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| 8-K - BSB FORM 8-K - BSB Bancorp, Inc. | bsbform8kjuly24.htm |
For Immediate Release
Date: July 23, 2015
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Contact:
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Robert M. Mahoney
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President and Chief Executive Officer
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Phone:
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617-484-6700
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Email:
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robert.mahoney@belmontsavings.com
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BSB Bancorp, Inc. Reports Second Quarter Results – Year to Date Earnings Growth of 73%
BELMONT, MA, July 23, 2015 (PR Newswire) - BSB Bancorp, Inc. (NASDAQ-BLMT) (the “Company”), the holding company for Belmont Savings Bank (the “Bank”), a state-chartered savings bank headquartered in Belmont, Massachusetts, today reported net income of $1.6 million, or $0.18 per diluted share, for the quarter ended June 30, 2015, compared to net income of $1.0 million, or $0.12 per diluted share, for the quarter ended June 30, 2014, or an increase of 54.0%. For the six months ended June 30, 2015, the Company reported net income of $3.0 million, or $0.34 per diluted share, as compared to net income of $1.7 million, or $0.20 per diluted share, for the six months ended June 30, 2014, or an increase of 73.0%.
Robert M. Mahoney, President and Chief Executive Officer, said, "We are pleased to announce a continuation of our organic growth and improving profitability."
NET INTEREST AND DIVIDEND INCOME
Net interest and dividend income before provision for loan losses for the quarter ended June 30, 2015 was $9.0 million as compared to $7.6 million for the quarter ended June 30, 2014, or an 18.6% increase. The provision for loan losses for the quarter ended June 30, 2015 was $365,000 as compared to a provision for loan losses of $307,000 for the quarter ended June 30, 2014, or an 18.9% increase. This resulted in a $1.4 million, or 18.6%, increase in net interest and dividend income after provision for loan losses for the quarter ended June 30, 2015 as compared to the quarter ended June 30, 2014. Net interest and dividend income before provision for loan losses for the six months ended June 30, 2015 was $17.8 million as compared to $14.9 million for the six months ended June 30, 2014, or a 19.1% increase. The provision for loan losses for the six months ended June 30, 2015 was $704,000, as compared to $696,000 for the six months ended June 30, 2014, or a 1.1% increase. This resulted in a $2.8 million, or 20.0%, increase in net interest and dividend income after provision for loan losses for the six months ended June 30, 2015 as compared to the six months ended June 30, 2014.
NONINTEREST INCOME
Noninterest income for the quarter ended June 30, 2015 was $948,000 as compared to $859,000 for the quarter ended June 30, 2014, or an increase of 10.4%. This increase was primarily driven by an increase in net gains on sales of loans and income from bank owned life insurance. Net gains on sales of loans increased $130,000 due to an increase in volume of loan sales. Income from bank owned life insurance increased $101,000 due to $15 million of additional policies purchased subsequent to June 30, 2014. This increase was partially offset by a decrease in loan servicing fee income of $60,000. Loan servicing fees decreased primarily due to a decrease in the volume of auto loans serviced for others. Noninterest income for the six months ended June 30, 2015 was $1.7 million as compared to $1.6 million for the six months ended June 30, 2014, or an increase of 7.8%. This increase was also driven by an increase in income from bank owned life insurance and net gains on sales of loans, partially offset by a decrease in loan servicing fee income.
NONINTEREST EXPENSE
Noninterest expense for the quarter ended June 30, 2015 was $7.0 million as compared to $6.5 million for the quarter ended June 30, 2014, or an increase of 7.4%. This increase was primarily driven by an increase in salaries and employee benefits costs. Our efficiency ratio improved to 70.1% during the quarter ended June 30, 2015 from 76.8% during the quarter ended June 30, 2014 as we continue to grow the balance sheet and manage costs. Noninterest expense for the six months ended June 30, 2015 was $13.9 million as compared to $13.2 million for the six months ended June 30, 2014, or an increase of 5.7%. This increase was primarily driven by an increase in salaries and employee benefits costs. Our efficiency ratio also improved to 71.4% during the six months ended June 30, 2015, from 79.8% during the six months ended June 30, 2014.
BALANCE SHEET
At June 30, 2015, total assets were $1.55 billion, an increase of $126.5 million or 8.9% from $1.43 billion at December 31, 2014. The Company experienced net loan growth of $112.9 million, or 9.6%, from December 31, 2014. Residential one-to-four family loans, commercial real estate loans, construction loans and home equity lines of credit increased by $71.6 million, $28.8 million, $12.3 million and $11.2 million, respectively. Partially offsetting this increase were decreases in commercial loans and indirect auto loans of $8.0 million and $2.4 million, respectively. The asset growth was funded by growth in deposits. We expect the balance of our indirect auto loan portfolio to decline as we have temporarily suspended new originations due to current market conditions.
At June 30, 2015, deposits totaled $1.15 billion, an increase of $165.2 million or 16.8% from $984.6 million at December 31, 2014. Core deposits, which we consider to include all deposits other than CD’s and brokered CD’s, increased by $130.8 million from December 31, 2014. Hal R. Tovin, Executive Vice President and Chief Operating Officer, said, “Second quarter deposit growth was driven by our expanding municipal banking program as well as the continued success of our targeted strategy for the legal profession. Existing relationships as well as new business penetration in both categories have created strong increases in municipal and IOLTA deposits.”
Total stockholders’ equity increased by $4.1 million from $137.0 million as of December 31, 2014 to $141.2 million as of June 30, 2015. This increase is primarily the result of earnings of $3.0 million and a $1.1 million increase in additional paid-in capital related to stock-based compensation.
ASSET QUALITY
The allowance for loan losses in total and as a percentage of total loans as of June 30, 2015 was $9.5 million and 0.74%, respectively, as compared to $8.9 million and 0.75%, respectively, as of December 31, 2014. For the six months ended June 30, 2015, the Company recorded net charge offs of $48,000, as compared to $40,000 for the six months ending June 30, 2014. Total non-performing assets were $2.8 million, or 0.18% of total assets, as of June 30, 2015, as compared to $2.8 million, or 0.20% of total assets as of December 31, 2014.
Company Profile
BSB Bancorp, Inc. is headquartered in Belmont, Massachusetts and is the holding company for Belmont Savings Bank. The Bank provides financial services to individuals, families, municipalities and businesses through its six full-service branch offices located in Belmont, Watertown, Cambridge, Newton and Waltham in Southeast Middlesex County, Massachusetts. The Bank's primary lending market includes Essex, Middlesex, Norfolk and Suffolk Counties, Massachusetts. The Company’s common stock is traded on the NASDAQ Capital Market under the symbol “BLMT”. For more information, visit the Company’s website at www.belmontsavings.com.
Forward-looking statements
Certain statements herein constitute “forward-looking statements” within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934, as amended. These statements are based on the beliefs and expectations of management, as well as the assumptions made using information currently available to management. Since these statements reflect the views of management concerning future events, these statements involve risks, uncertainties and assumptions. As a result, actual results may differ from those contemplated by these statements. Forward-looking statements can be identified by the fact that they do not relate strictly to historical or current facts. They often include words like “believe,” “expect,” “anticipate,” “estimate,” and “intend” or future or conditional verbs such as “will,” “would,” “should,” “could” or “may.” Certain factors that could cause actual results to differ materially from expected results include changes in the interest rate environment, changes in general economic conditions, our ability to continue to increase loans and deposit growth, legislative and regulatory changes that adversely affect the businesses in which the Company is engaged, changes in the securities market, and other factors that may be described in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q as filed with the Securities and Exchange Commission. Readers are cautioned not to place undue reliance on these forward-looking statements, which speak only as of the date of this release. The Company disclaims any intent or obligation to update any forward-looking statements, whether in response to new information, future events or otherwise, except as may be required by law.
BSB BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands, except per share data)
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June 30, 2015
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December 31, 2014
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(unaudited)
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ASSETS
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Cash and due from banks
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$ 1,739
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$ 2,275
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Interest-bearing deposits in other banks
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45,765
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49,492
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Cash and cash equivalents
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47,504
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51,767
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Interest-bearing time deposits with other banks
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131
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131
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Investments in available-for-sale securities
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22,025
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22,079
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Investments in held-to-maturity securities (fair value of $129,324 as of
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June 30, 2015 and $119,447 as of December 31, 2014)
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128,801
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118,528
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Federal Home Loan Bank stock, at cost
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15,082
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13,712
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Loans, net of allowance for loan losses of $9,537 as of
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June 30, 2015 and $8,881 as of December 31, 2014
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1,292,273
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1,179,399
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Premises and equipment, net
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2,888
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3,066
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Accrued interest receivable
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3,243
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2,977
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Deferred tax asset, net
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5,860
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5,642
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Income taxes receivable
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791
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321
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Bank-owned life insurance
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29,282
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23,888
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Other assets
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4,172
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4,040
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Total assets
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$ 1,552,052
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$ 1,425,550
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LIABILITIES AND STOCKHOLDERS' EQUITY
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Deposits:
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Noninterest-bearing
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$ 168,919
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$ 179,205
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Interest-bearing
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980,838
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805,357
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Total deposits
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1,149,757
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984,562
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Federal Home Loan Bank advances
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241,100
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285,100
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Securities sold under agreements to repurchase
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2,460
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1,392
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Other borrowed funds
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1,044
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1,067
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Accrued interest payable
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991
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961
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Deferred compensation liability
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6,192
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5,751
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Other liabilities
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9,355
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9,707
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Total liabilities
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1,410,899
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1,288,540
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Stockholders' Equity:
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Common stock; $0.01 par value, 100,000,000 shares authorized; 9,084,081 and 9,067,792
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shares issued and outstanding at June 30, 2015 and December 31, 2014, respectively
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91
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91
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Additional paid-in capital
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88,527
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87,428
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Retained earnings
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56,580
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53,603
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Accumulated other comprehensive loss
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(32)
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(22)
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Unearned compensation - ESOP
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(4,013)
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(4,090)
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Total stockholders' equity
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141,153
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137,010
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Total liabilities and stockholders' equity
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$ 1,552,052
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$ 1,425,550
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Asset Quality Data:
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Total non-performing assets
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$ 2,821
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$ 2,818
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Total non-performing loans
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$ 2,773
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$ 2,770
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Non-performing loans to total loans
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0.21%
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0.23%
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Non-performing assets to total assets
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0.18%
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0.20%
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Allowance for loan losses to non-performing loans
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343.87%
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320.59%
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Allowance for loan losses to total loans
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0.74%
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0.75%
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Share Data:
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Outstanding common shares
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9,084,081
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9,067,792
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Book value per share
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$ 15.54
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$ 15.11
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BSB BANCORP, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS
(Dollars in thousands, except per share data)
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Three months ended
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Six months ended
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June 30,
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June 30,
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2015
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2014
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2015
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2014
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(unaudited)
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(unaudited)
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Interest and dividend income:
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| Interest and fees on loans | $ 10,679 |
$ 8,402
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$ 20,911 |
$ 16,295
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Interest on taxable debt securities
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738
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804
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1,479
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1,610
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Dividends
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64
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33
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122
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62
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Other interest income
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22
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29
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44
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50
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Total interest and dividend income
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11,503
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9,268
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22,556
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18,017
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Interest expense:
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Interest on deposits
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1,941
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1,388
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3,696
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2,556
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Interest on Federal Home Loan Bank advances
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527
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263
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1,058
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514
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Interest on securities sold under agreements to repurchase
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1
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1
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1
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2
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Interest on other borrowed funds
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7
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7
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14
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15
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Total interest expense
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2,476
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1,659
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4,769
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3,087
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Net interest and dividend income
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9,027
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7,609
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17,787
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14,930
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Provision for loan losses
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365
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307
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704
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696
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Net interest and dividend income after provision
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for loan losses
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8,662
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7,302
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17,083
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14,234
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Noninterest income:
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Customer service fees
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204
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225
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415
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443
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Income from bank-owned life insurance
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202
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101
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389
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199
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Net gain on sales of loans
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293
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163
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332
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225
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Loan servicing fee income
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143
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203
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304
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419
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Other income
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106
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167
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264
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295
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Total noninterest income
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948
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859
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1,704
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1,581
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Noninterest expense:
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Salaries and employee benefits
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4,377
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4,026
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8,721
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8,149
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Director compensation
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215
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229
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492
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533
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Occupancy expense
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264
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267
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557
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545
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Equipment expense
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140
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157
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284
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311
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Deposit insurance
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232
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180
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450
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364
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Data processing
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772
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727
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1,527
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1,478
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Professional fees
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177
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169
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389
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400
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Marketing
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266
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256
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519
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515
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Other expense
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545
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495
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985
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881
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Total noninterest expense
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6,988
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6,506
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13,924
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13,176
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Income before income tax expense
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2,622
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1,655
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4,863
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2,639
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Income tax expense
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1,019
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614
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1,886
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918
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Net income
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$ 1,603
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$ 1,041
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$ 2,977
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$ 1,721
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Earnings per share
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Basic
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$ 0.19
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$ 0.12
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$ 0.34
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$ 0.20
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Diluted
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$ 0.18
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$ 0.12
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$ 0.34
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$ 0.20
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Return on average assets
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0.43%
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0.35%
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0.41%
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0.30%
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Return on average equity
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4.57%
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3.14%
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4.30%
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2.62%
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Interest rate spread
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2.31%
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2.46%
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2.34%
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2.53%
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Net interest margin
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2.47%
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2.64%
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2.50%
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2.70%
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Efficiency ratio
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70.06%
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76.83%
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71.44%
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79.80%
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